Minnesota Paid Leave Takes Effect Jan. 1, 2026

Eligible city employees may access the leave program immediately in the new year.

On Jan. 1, 2026, one of the most significant changes to state employment law in recent history will take effect as employees across Minnesota gain access to the Minnesota Paid Leave program. Originally passed into law in 2023, the program applies to every city in the state and nearly all city employees.

What is Minnesota Paid Leave?

Minnesota Paid Leave is a state-mandated insurance program regulated by the Department of Employment and Economic Development (DEED). It provides partial wage replacement and job protection for employees taking medical leave to address their own serious medical condition or family leave to bond with a newborn, serve as a care giver, address personal safety issues, or take military-related leave.

Employees may use up to 12 weeks of medical leave and up to 12 weeks of family leave, with a combined cap of 20 weeks in a benefit year. Employees who had children in 2025 may use parental leave through the state program within one year of the child’s birth. DEED expects a higher volume of parental leave in the first year, then a decline in later years.  

Employees can estimate their paid leave benefits using the Minnesota Paid Leave payments calculator.  

Earlier in 2025, cities had the option to apply with DEED to offer a “private plan” that provides equal or greater rights, protections, and benefits than those offered under the state-administered plan. Because that deadline for a 2026 private plan exemption has now passed, any Minnesota employer who has not received explicit approval for a private plan will be covered under the state plan for 2026.

Premium payments

Minnesota Paid Leave works like an insurance program funded through payroll premiums. For the first year, DEED set the rate at 0.88% of taxable wages, with employers paying at least 50% and employees paying no more than 50% of the premium. This means that cities will be responsible for a minimum of 0.44% of taxable wages for each employee, unless the city is designated as a small employer. For more information, see Q6 on the League’s Minnesota Paid Leave FAQ. 

Premium payments are due at the end of each quarter, with the first payments due on April 30, 2026.

Cites can use DEED’s Minnesota Paid Leave premium calculator to estimate their costs.

Paid Leave Administrator

Each employer must designate a Paid Leave Administrator and report the assignment to DEED. The administrator will serve as the employer’s main contact with the Minnesota Paid Leave office and will have access to the online portal to review employee leave requests.  

Resources for cities

More information is available on how the Minnesota Paid Leave program will operate. The League of Minnesota Cities offers a Minnesota Paid Leave FAQ with key details for cities.

You can also review the article Prepare Your City Now for the 2026 Launch of Minnesota Paid Leave from the November-December issue of Minnesota Cities magazine.

Additional resources are available in DEED’s Minnesota Paid Leave Employer Resource Toolkit.

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